Question: All techniques with NPV profile - Mutually exclusive projects Projects A and B of equal risk, are alternatives for expanding Rosa Company's capacity The firm's
All techniques with NPV profile - Mutually exclusive projects Projects A and B of equal risk, are alternatives for expanding Rosa Company's capacity The firm's cost of capital is 16%. The cash flows for each project are shown in the following table ? a. Calculate each project's payback period b. Calculate the net present value (NPV) for each project, c. Calculate the internal rate of retur (IRR) for each project Data table d. Indicate which project you would recommend (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) a. The payback period of project Aisyears(Round to two dl Project A Project B Initial investment $230,000 $200,000 (CF) Year (0) Cash inflows (CF) $60,000 560,000 $65,000 $60.000 $70,000 560,000 75,000 $60.000 $80.000 $60.000 -N 2 5
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